Newfoundland’s High Grade Gold Discoveries Are Fueling An Investor Rush

In 2018, following Sokoman Minerals discovery hole (44.96 g/t gold over 12m) in the Moosehead Gold District, there was a staking rush in north-central Newfoundland, surrounding the project.

Since then Sokoman secured the backing of billionaire gold investor Eric Sprott and has drilled over 30,000 meters across the project.

They’ve been hitting incredible grades throughout, including 124.2 g/t over 5.1 meters, and are on Phase 6 of an extensive, widely publicized drill program.

Then in Nov 2019, as a private company, New Found Gold Corp announced one of the highest grade most significant gold intercepts ever drilled in the province. Hole 19-01 was reported with a 19.0 meter intercept of 92.86 grams per tonne gold.

The stir that NFG’s Queensway project intercept has made in the market, has helped revive the entire Newfoundland mining and exploration industry.

The province is host to numerous world class deposits within this structural belt, including Marathon Gold’s (MOZ on TSX, MDGPF on OTC) 4 million ounce Valentine Lake deposit.

Marathon Gold today sports a market capitalization of nearly $500 million (CAD), while New Found Gold’s recent IPO pinned them at $231 million.

This is where K9 Gold Corp. (TSXV:KNC, OTC:WDFCF) and their Stony Lake East gold project becomes interesting for investors seeking the next big drill hit.


K9 Gold Corp. (TSXV:KNC, OTC:WDFCF) Stony Lake East is situated between Marathon Gold’s giant deposit and Sokoman’s Moosehead project, and due west of New Found Gold’s massive Queensway property.  A preliminary field program in 2019 identified eight areas of highly anomalous to high grade gold (15 g/t) mineralization.


Trading below $1.00 with a tight share structure and a market capitalization of less than $30 million, K9 Gold Corp. (TSXV:KNC, OTC:WDFCF) has commenced field operations at Stony Lake East. 

We expect to see strong news flow and heightened investor interest in shares of GLV as the area continues to light up.

Geological Setting Ripe For Massive Discoveries

Deep and long active structures are one of the most important commonalities in big mineral deposits. The Central Newfoundland Gold Belt may be one of the most deep seated structurally prepared environments on the planet.


These deep crustal breaks have been found to be important mineralizing structures for numerous multi million-ounce gold deposits along these very trends. Dalradian’s Curraghinalt  deposit in Northern Ireland, Oceana Gold’s Haile Deposit in Southern Carolina and Marathon Gold’s Valentine Lake deposit which lies just southwest of Global Vanadium’s Stony Lake East project, each provide evidence that these structures can be an integral conduit for gold deposits.

Location

K9 Gold Corp. (TSXV:KNC, OTC:WDFCF) Stony Lake East is early stage but is known to have numerous anomalous to high grade gold showings. This prime real estate covers over 13,000 ha and 27 km of strike length along the Cape Rae/Valentine Lake shear structure.

The Company expects to have boots on the ground starting the beginning of Sept. The first phase of exploration will consist of detailed geophysics, geological mapping and sampling to follow up on the 8 areas of highly anomalous to high grade gold mineralization, in order to define a preliminary drill program.

Investors familiar with gold exploration speculation have seen tremendous success in early stage area plays around Red Lake, Ontario, Golden Triangle in B.C. and White Gold District in the Yukon. 

K9 Gold Corp. (TSXV:KNC, OTC:WDFCF) Stony Lake East asset is well situated, in the center of what has already become one of the hottest area plays in North America.

Cashed up

Global Vanadium was able to quickly raise $2.5 million on the merits and potential surrounding Stony Lake East.  They’re fully cashed up for an extensive exploration and drill campaign, and still have less than 30 million shares outstanding.

A tight share structure and low float are sure to provide additional torque to the share price on continued exploration success on Stony Lake East, as well as surrounding projects.

The Newfoundland Area Play Has Just Begun

The New Found Gold and Marathon stories will be driving news and investor interest into this area for years to come, bringing attention to the juniors exploring and drilling in the area.  K9 Gold Corp. (TSXV:KNC, OTC:WDFCF), situated right in the middle, is expected to catch significant attention as a result.  

The Moosehead district has already received it’s stamp of approval from billionaire precious metals investor Eric Sprott through his direct investment into Sokoman Minerals. It would be very surprising if Mr. Sprott did not have one eye on GLV’s Stony Lake as they prepare to drill the project.

This is not a scratch and sniff area play – this is the real deal where everyone is cashed up and working/drilling, with loads of news flow and potential discoveries for the foreseeable future.


Disclaimer

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter/report/commentary piece/article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Furthermore, it is certainly possible for errors or omissions to take place regarding the profiled company, in communications, writing and/or editing.

Nothing in this publication should be considered as personalized financial advice. We are not licensed under any securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. The information provided in this article is for informational purposes only and is not a recommendation to buy or sell any security. Please consult a licensed financial advisor before making any investment decision. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. HotStocksReview.com is a website owned by Mountain Capital Corp (“Mountain”), (100 King Street West #5700, Toronto, Ontario). Mountain has been compensated by Global Vanadium Corp (“GLV”). to provide strategic digital media and data analytics services on behalf of the company for an undefined term. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision.

By reading this communication, you agree to the terms of this disclaimer, including, but not limited to: releasing Mountain Capital Corp, its affiliates, assigns and successors from any and all liability, damages, and injury from the information contained in this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.

Please refer to our complete Disclaimer and Disclosure here
Contact: editor@hotstocksreview.com